Overview of Public Limited Company Registration

Public limited companies enjoy all the rights of a corporate entity with limited liabilities and it is an ideal choice for the small and medium scale enterprises who wish to raise the equity capital from the general public.

Basic Clarification on Incorporation of Public Limited Company

Just like other companies, Public Limited Company is also registered as per the rules and regulations of the Companies Act, 2013. A public Company enjoys the benefits of limited liabilities for its members and has rights to sell its shares for raising the capital of the company. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.

It must have a minimum number of seven members whereas there is no limit for the maximum number of members. It provides all the benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates any Public limited company from the private limited companies.

Benefits of Public Limited Company Registration

Here are the benefits provided to the company with Public Limited company registration

• Limited liabilities for the shareholders of the company

  Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite of it, the shareholders are responsible for their own legal offenses. All the members, directors and shareholders enjoy this right and their assets cannot be seized by any bank, creditors or government bodies.

• Perpetual Succession

  A public limited company is considered as a corporate body that has perpetual succession. Means in case of death, retirement, insanity, and insolvency of one or more members/ shareholder/ directors, the company still continue its existence.

• Improved capital of the company

  In a public limited company, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.

• Borrowing Capacity

  A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most of the financial institutions find public companies more prominent than other unregistered companies.

• Fewer risks

  Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.

  Better opportunities for growth and expansion of the company:

• Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.

Documents Required for Public Limited Company Registration

An applicant has to collect all these documents to file along with the incorporation application:

• Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders. 
• Address Proof of all the proposed directors and shareholder of the company.
• PAN card details of all the directors and shareholders
• Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months. 
• An NOC or No Objection Certificate from the landlord of the business place. 
• DSC or Digital Signature Certificate of the designated directors
• Memorandum of Association (MOA) and Article of Association (AOA)

Features of Public Limited Company Registration

Here are some important features of Public Limited Company:

• Number of Directors in the company

  As stated in the provisions of Companies Act, a public company must have a minimum number of 3 directors to incorporate a company whereas there is no restriction on the maximum number of directors.

• Name of the Company

  All the Public limited companies must add “Limited” word at the end of their name. it is denoted as an identity of a public company.

• Prospectus of the Company

  Prospectus of the company is mandatory for the public limited companies. It is issued by the proposed company for its general public. It is a note of comprehensive statements of works and affairs of the company. However private companies have no such compliances as they don’t have rights to invite the public for their shares.

• Paid-up Capital

  As per the requirements of the act, no minimum capital required for the registration.

What is the difference between the Public limited Company and Private Limited Company?

There are various points of differences between both these companies. Here are some chief differences between both:

Public Limited Company Registration Procedure

• Step 1: Apply for the Digital Signature Certificate

  First of all, you have to apply for the Digital Signature Certificate for all the proposed directors in the company. DSC is used to sign the e-forms and is an authentic and safe method to file all the documents on an electronic platform. It is a mandatory document.

  A director can easily obtain DSC from the nearest Certifying Authorities or CAs with self-attested coppices of their identity proof. It takes around 1 -3 working days to obtain a DSC.

• Step 2: Name Verification

  The third step involves name registration of the company. You can check the name availability through the MCA portal by following this step

  Visit the MCA Portal> select the MCA services> Click Check Company Name

  Note: The company name should not be taken or registered and should not be similar to a brand name.

• Step 3: Filing Form SPICe+

  Once the company’s name has been approved you can now file the SPICe+ form to avail the company incorporation certificate. Along with it, you have to file all the required documents such as MOA (Memorandum of Association) and AOA (Article of Association). These two documents contain the details of the mission, objectives, aims, visions, business activities, responsibilities of all the directors and shareholders and definition of the proposed company.

  All the documents and applications are further verified by the higher authorities and it takes around 7 to 9 working days.

• Step 4: Obtaining Certificate of Incorporation

  Once all the applications and document to have been received to the authorities and they have verified it, the company would receive the Certificate of Incorporation which will include CIN and date of incorporation.

Requirements for the Public Company Registration

According to the provisions of Companies Act, 2013 here are the requirements you need to fulfill to incorporate a Public company in India:

• The proposed company must have a minimum number of 7 shareholders
• The proposed company must have a minimum number of 3 directors
•  No minimum capital required
• At least one director should have a Digital Signature Certificate
• Memorandum of Association and Article of Association.
• After approval from Registrar of the Companies, the proposed public company has to apply for the “Certificate of Business Commencement.”

Advantages of Registering as a Flipkart Seller

Using this type of marketplace has several benefits because Flipkart is one of the biggest e-commerce hubs in India. Using this type of marketplace would provide sellers with a variety of advantages. Benefits of Flipkart Seller Registration include the following:

Growth and Expansion

Sellers who register in this manner can benefit from expanding prospects and various consumer demand patterns. Only by taking into account the registration process would this be feasible.

Minimal Business Costs

Obtaining this type of registration is a simple process. Also, once the organisation has this registration, the cost of compliance is constrained.

Transparency

Securing this registration is easy, as was already indicated. After registration is obtained, working with customers is open and honest.

Ease of doing business

The simplicity of conducting business is another benefit of this registration method. It would be simple to run any firm that is registered on this e-commerce platform.

Customer Surveys

On this platform, sellers who have enrolled will receive consumer preference questionnaires. This will undoubtedly raise the calibre of services the seller offers the customer.

More Advertising

Product advertising on Flipkart will boost the seller’s sales. This directly improves the seller’s reputation.

Who may submit a Flipkart Seller registration application?

The most crucial need for submitting an application for Flipkart Seller registration is having a minimum of one product to sell. The following person can apply for registration as a Flipkart Seller if they meet all the necessary requirements:

Sole Proprietorship

A sole proprietorship will be automatically identified whenever someone wants to sell on Flipkart using their own name and legal authority. A sole proprietorship offers the promoters little protection from liability, is difficult to transfer, cannot have shares or partnerships, is difficult to customise, and has few legal rights to obtain bank financing. Expert guidance therefore advises against signing up as a Flipkart vendor through a sole proprietorship company. 

Limited Liability Company

One of the most well-liked ways to sell on Flipkart is to register as a Private Limited company. It provides limited liability protection for organisers. A corporation is a free-standing entity with straightforward generalizability, the ability to add shareholders or associates, and the potential to quickly scale business operations. The key paperwork below must be submitted for a private limited company.

Partnership or LLP Firm

A general partnership business can also sell products on Flipkart. Hence, it is preferable to set up a limited liability partnership before joining the Flipkart marketplace. It provides statutory protection, easy generalizability, a unique legal structure, and other crucial papers for quickly joining the Flipkart seller community.

Trust & Foundation

Trust & Foundation Charities and nonprofit organisations are also eligible to sell on Flipkart. To demonstrate the legitimate authenticity of the documents, they must be submitted under the name of the foundation.

Minimum Conditions for Registration as a Flipkart Seller

Vendors who want to register for Flipkart seller registration must adhere to the following minimal standards:

• Since Flipkart needs the Goods and Service Tax Identification Number, the applicant must have a current GST registration.
• The applicant’s PAN card. In the event of a sole proprietorship, a person’s personal Pan Card is required. Also, if the application is a registered corporate entity, both the organisation’s PAN card and the applicant’s representative’s personal PAN card must be presented.
• Business registration is required as well if the company is not operated as a sole proprietorship.
• The candidate must be in possession of an active bank account. This is crucial since all transactions in online marketing happen immediately through online money transfers.
• A minimum of one product must be available from the vendor on the website.
• The seller must also offer an active mobile number and email address in addition to the aforementioned minimal standards.